Weekly Review-Red Chilli

13-Jul-2024 06:48 PM

Red chilli prices down due to weak export demand and excess stock

New Delhi. There has been a downturn in the prices of red chilli for some time now. Looking at the current situation, there is no possibility of a rise in prices right now. Sources say that at present there is a lack of export demand. Also, the stock in the markets of the producing centers is also more than last year. Due to which stockists are selling by reducing the price to lighten the stock. Market sources believe that if the export demand does not increase in the coming days, then the prices may fall further by 5/10 rupees per kg. If the export demand increases, there may be a rise of 10/15 rupees per kg.

Fall in prices

Last week, there was a fall in the prices of red chilli. The arrival of cold goods in the markets of the producing centers is good. The arrival in Guntur market is going on at an average of 60/75 bags per day. Currently, there is no demand from China, while the buying from Bangladesh and Malaysia is also very low. Due to this, the price of red chilli Teja in Guntur market has come down to Rs. 180 per kg, which was being quoted at Rs. 185 per kg at the beginning of the week. At the beginning of the current month, the price was being quoted at Rs. 195. During the current week, the price of red chilli Teja in Khammam and Warangal market was also quoted with a decline of 2/3 rupees per kg.

Price is lower than last year

Currently, the price of red chilli Teja is much lower than last year. Currently, the price of red chilli Teja in the markets of production centers is Rs. 180/192 per kg. Whereas, last year, during the same period, the price of Teja in Guntur, Khammam market was being quoted at Rs. 240/250 per kg. In view of the weak demand, there is no possibility of much increase in prices right now. Higher stock

During the current season, due to higher production in the country, the stock of red chilli in the mandis of the producing centres was higher than last year. Also, due to exports not being as per expectations, the stock is higher than last year. According to the information received, there is news of the current stock of red chilli in Guntur mandi being 60/65 lakh bags, whereas last year during the same period, the stock was of 45/50 lakh bags. Currently, the stock of red chilli in Telangana (Warangal, Khammam) is 38/40 lakh bags (each bag is 45 kg) whereas last year the stock was of 20/25 lakh bags.

Sowing will decrease

Due to the price of red chilli being lower than last year, there is news of sowing of red chilli in the producing centres being less than last year. Trade sources believe that the sowing of red chilli in Madhya Pradesh is believed to be 20/25 percent less than last year. The sowing of red chilli has been completed in Madhya Pradesh. Whereas there are reports of sowing of red chilli in Andhra Pradesh and Telangana starting by the end of the current month. But due to farmers not getting a fair price for their produce, the sowing of red chilli is estimated to decrease by 25/30 percent.

Not much rise

Due to high stock at the production centers, there is no possibility of much increase in the prices of red chilli. Sources believe that in the coming days, if the export demand increases, the prices may increase by Rs 10/15 per kg. There is no possibility of more rise than this. Because the stock is also sufficient, apart from this, the new crop of Madhya Pradesh will also start in October.

Export

During the first month of April of the current season 2024-25, the export of red chilli has been 43472.28 tonnes. Whereas in April-23 the export was 53834 tonnes. The total export of red chilli in the year 2023-24 was 601084 tonnes. Whereas in the year 2022-23, the export was 524017 tonnes. During the year 2020-21, the record export of red chilli was 649815 tonnes.